Multinational investment bank Credit Suisse said on Thursday that it will take some time before Tesla's Model 3 will be challenged by an electric vehicle (EV) newcomer but it clarified that Ford's pricing range may be a better alternative for potential buyers.
According to CNBC, Credit Suisse analyst Dan Levy pointed out that Ford's EV has a better price range compared to other models in the market, especially since Ford's car is focused primarily on performance.
Levy said Ford's launch of the Mach-E, which will be announced on Sunday, will mark the first potential test that Elon Musk's Tesla has to overcome if it wants to remain on top of the competition.
It is expected that the Michigan-based vehicle company will set the Mach-E's price range between $40,000 and $50,000 - a range Levy believes is at the "mass luxury range." It is worth noting, though, that the Model 3 has a starting price of $36,000.
The financial services firm further explained that while it is not expecting Tesla to face a lot of competition this year, 2020 will be a whole new era as Ford comes around to potentially compete against the Model 3.
Still, Credit Suisse set Tesla shares at a price target of $200 - an amount that is well 40 percent below the stock's Wednesday close at $346.11 per share. Market analysts noted that the bank remains a bearish skeptic of the EV giant's share potential.
The international bank also predicted that if Ford makes a massive haul with the Mach-E's sales, some of Tesla's holding power in the American EV market could wind down significantly. The latter currently accounts for almost 80 percent of the country's EV market share.
Meanwhile, product testing leader Consumer Reports finally restored its "recommended" rating for both the Model S and the Model 3 on grounds that the company implemented the necessary patches to the said EVs.
According to CNN, senior director of auto testing at Consumer Reports, Jake Fisher, clarified that while the Model 3 "struggled" in 2018 due to frequent design changes and pressure on production, improvements were integrated to enhance the car's reliability.
Six years back, the consumer ratings expert branded the Tesla Model S as the best car that ever came into its testing grounds. Two years later, the rating was set over 100, and last year, the coveted "recommended" rating was lifted.
Shortly after news of the recovered ratings emerged, Tesla shares jumped around one percent on Thursday afternoon, echoing Fisher's statements that the recovery of the rating could be more encouraging for buyers.
